Slide 1: Full Year Results
Full Year Results 12 months to 31 May 2022 6 September 2022
Slide 2: Overview
Overview Chris Stone Chairman
Slide 3: Executive highlights
Executive highlights Revenue 1 £314.8m Strong second half revenue growth across the Group delivered record profits +17.9% FY 2021: £267.0m Total revenue growth of +17.9% at constant currency comprised of: at constant currency Assurance growth of +12.1% YOY, with an exceptional second half in North A
Slide 4: Financial Review
Financial Review Tim Kowalski CFO
Slide 5: Statutory financial summary (actual exchange rates)
Statutory financial summary (actual exchange rates) Revenue 1 Gross Profit Gross Margin % £314.8m £132.6m 42.1% +16.4% FY 2021: £270.5m +19.9% FY 2021: £110.6m +1.2 ppts FY 2021: 40.9% Adjusted EBIT * 1 Adjusted EBIT Margin %* Adjusted EBITDA 1 £52.5m 16.4% £59.2m +33.9% FY 2021: £39.2m +1.9 ppts FY
Slide 6: Operational KPIs
Operational KPIs Delivering our growth strategy FY 2022 FY 2021 Growth Drivers Accelerating our future growth engines EaaS Sales (£k) 3,384 2,069 Escrow-as-a-Service sales grew a further 64% YoY to £3.4m Remediation Sales (£k) 9,544 4,991 Remediation sales almost doubled YoY to £9.5m Microsoft XDR S
Slide 7: Impact of accounting changes & acquisition on YoY comparability
Impact of accounting changes & acquisition on YoY comparability For comparative purposes, and as a reminder, these results (prepared in line with IFRS) require consideration of the following: Adoption of the IFRIC agenda decision on cloud configuration and customisation costs in April 2021, resultin
Slide 8: Financial performance – Group income statement
Financial performance – Group income statement Record revenue and profits Revenue: Strong H2 Assurance growth and IPM Revenue +17.9% at constant currency (+16.4% actual rates), driven by strong H2 Assurance as we continue to successfully growth and the acquisition of IPM execute our strategy • Reven
Slide 9: Assurance financial performance
Assurance financial performance Reaping the benefits of a global model Revenue by region - Constant Currency FY 2022 FY 2021 Revenue: Continued revenue momentum Assurance grew +12.1% at constant currency basis to £258.5m (+10.5% actual +11.8% rates) £114.6m +14.6% Performance across territories £102
Slide 10: Assurance service line performance
Assurance service line performance Strong revenue growth for all service lines Global Professional Services (GPS) +11.0% YoY (at constant currency) Revenue by service line - constant currency Global Professional £189.0m +11.0% Remediation sales orders nearly doubled, totalling £9.5m in FY22 Services
Slide 11: Software Resilience financial performance
Software Resilience financial performance Transformed by IPM acquisition Revenue: Transformed by IPM acquisition Revenue by region - Constant Currency FY 2022 FY 2021 SR Group Revenue grew at constant currency by +55.1% to £56.3m including the addition of IPM +277.5% Revenue excluding IPM decreased
Slide 12: Software Resilience service line performance
Software Resilience service line performance Strong YOY revenue growth as a result of IPM Revenue by service line - constant currency Contracts: Growth driven by IPM acquisition Analysing the service performance, contracts Software resilience increased by +60.1% at constant currency £38.1m +60.1% co
Slide 13: Financial performance - Cash
Financial performance - Cash Strong cash generation continues Net (debt)/cash: Cash conversion improved to 101.9% FY 2022 FY 2021 Net debt increase of £135.7m with net debt of £52.4m in FY 2022 vs £m £m net cash of £83.3m in FY 2021. Driven by £153.0m acquisition of Cash flow before working capital
Slide 14: Looking forward
Looking forward Mike Maddison CEO
Slide 15: Cyber resilience is a challenge for today not tomorrow
Cyber resilience is a challenge for today not tomorrow And with that, And regulatory and We continue to see society’s continued While the threat reliance on the legislative exponential digital continues to grow connected requirements are transformation environment increasing Digital supply chains ar
Slide 16: And increasingly a C-suite decision and responsibility
And increasingly a C-suite decision and responsibility Gartner predicts that by 2025/26: 70% of CEOs will mandate a culture of organisational resilience to survive coinciding threats from cybercrime, severe weather events, civil unrest and political instabilities 60% of organisations will use cyber
Slide 17: NCC Group is a market-leading cyber resilience business
NCC Group is a market-leading cyber resilience business… … positioned to meet the current and future market demand through having: A recognised and established process for building talent: Over 1,400 technical delivery specialists – net increase of 271 technical heads (+24%) in FY22 115 next generat
Slide 18: Underpinned by insight, innovation and intelligence
Building on strong foundations to exploit the opportunity Consulting and Implementation Client centricity and sector focused capability, extending current verticals and markets expanding brand reach beyond the Technical Assurance experienced buyer Furthering our market leading research and deep tech
Slide 19: Summary and outlook
th Summary and outlook Mike Maddison CEO
Slide 20: Summary and outlook
Summary and outlook Strong second half growth delivered targets of double digit growth in Assurance and positive underlying growth in Software Resilience Successful execution of strategy lays foundation for next phase of growth Robust cash generation continues to fund investment opportunities CEO st
Slide 21: Q&A
a nccgroup” Q&A
Slide 22: Appendices
| : _ necgroup” Appendices
Slide 23: Notations
Notations Page 3 1. All financial performance numbers presented are based on post IFRS-16 unless specifically noted. References to the Group’s results are to continuing operations. See Note 3 of the RNS for an explanation of Alternative Performance Measures (APMs) and adjusting items. Further inform
Slide 24: Income Statement - refer to RNS for notes
Income Statement - refer to RNS for notes 24 Notations detailed on page 23 of this presentation
Slide 25: Cashflow Statement - refer to RNS for notes
Cashflow Statement - refer to RNS for notes 25 Notations detailed on page 23 of this presentation
Slide 26: Balance Sheet - refer to RNS for notes
Balance Sheet - refer to RNS for notes 26 Notations detailed on page 23 of this presentation
Slide 27: Disclaimer
Disclaimer This presentation, including a hard copy of these slides, the talks given by the presenters, the information communicated during any delivery of the presentation and any question and answer session and any document or material distributed at or in connection with the presentation (togethe